Economic forces, Socio cultural forces , political , legal forces can effect international marketing

Elements of Culture
1.Language (verbal and nonverbal) 2. Religion 3.Values and Attitudes 4. Manners and Customs

5. Material culture 8. Social Institutions 7. Education 6. Aesthetics

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Culture: 4!1 dimension model

1. 2. Differences in cultural values, which is found to exist among countries, affects consumer behavior Hofstede, who studied over 90,000 people in 66 countries, found that the cultures differed along four primary dimensions: Individualism: degree to which people act as individual rather than as members of groups which focuses on self-orientation. In high IDV each member is self centered. (High IDV small DMU) Power Distance : Degree of inequality between people . In high PD society power is concentrated among few people at the top who makes decision (France , Philippines) . In low PD power is widely dispersed Denmark, Sweden ). Uncertainty Avoidance: degree to which people prefer formal rules and fixed pattern of life such as career structure and laws. In high UA society managers resort to long term planning to avoid risk. Strong UA;France, Belgium, Weak UA: Denmark, Sweden ). Masculinity: degree to which masculine values such as achievement, performance, success, money ,competition prevail over feminine values like warm personal relationship, care for the weak. Marketing communications becomes different
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3.

4.

Foreign market potential: A sequential process

Stage 1 : Preliminary screening

Key question: which foreign market warrant detail investigation?

Stage 2 : Fine grade screening

What is the aggregate demand in each of the selected market? How attractive?

Stage 3 : Company sales potential

Stage 4 : Sub segment in each qualified market

How to retain competitiveness?

Preliminary Screening 1. 2. 3. 4. Demographic / Physical Environment: Political Environment : Economic Environment Sociocultural environment

Analysis of Industry Market Potential 1. 2. 3. 4. 5. 6. Market Access : Product Potential : Local Distribution and Production : Sales Volume Forecasting : Landed cost : Cost of Internal Distribution :

Sub- segmentation 1. Demographic segmentation/economic factor 2. Psychographic segmentation/motivation 3. Behaviour segmentation/ buyer behavior 4. Multi criteria segmentation